“Psychosocial Homeostasis” is a theoretical model which combines psychology, behavior and cultural relations, and is the work of American Chinese academic Francis L. K. Hsu. The most unique part of Hsu’s formula is that it understands people as a “social-cultural space” and not an independent unit. It aims to understand people through their interaction with others, objects and cultural norms, and as well as their mental and cultural state. Using this model to carry out comparative research on civilizations like China, India and the US offers compelling conclusions. This theory has links to Professor Hsu’s Chinese background, for example it contains Confucian concepts like “self cultivation, family harmony, national management and world peace” and it begins with the Chinese cultural understanding that humans are inherently linked. It emphasizes the family group, neutralization and balance. Professor Hsu’s “Psychosocial Homeostasis” not only has important implications for anthropology, sociology and psychology, it also looks at the international order from a new, cultural psychological perspective and has possibility to challenge mainstream international relations theory.